US sportswear brand Nike’s Q2 FY22 revenue grows to $11.4 bn

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Nike Inc, a leading American sports and fashion brand, reported a revenue increase to $11.4 billion in the second quarter of fiscal 2022, up 1 per cent compared to prior year. Gross margin increased 280 basis points to 45.9 per cent as compared to the same quarter of fiscal 2021. The gross margin growth was led by margin expansion in Nike Direct business.

The sales from Nike Direct were $4.7 billion, up 9 per cent on a reported basis and up 8 per cent on a currency-neutral basis while the Nike Brand Digital sales increased 12 per cent or 11 per cent on a currency-neutral basis, led by 40 per cent growth in North America.

“Nike’s strong results this quarter provide further proof that our strategy is working, as we execute through a dynamic environment,” John Donahoe, president and chief executive officer of the company, said in a press release. “We are now in a much stronger competitive position today than we were 18 months ago. And I want to thank our roughly 75,000 global teammates for all their work to provide consumers with the compelling new product, innovation and experiences that only Nike can deliver.”

Nike Inc, a leading American sports and fashion brand, reported a revenue increase to $11.4 billion in the second quarter of fiscal 2022, up 1 per cent compared to prior year. Gross margin increased 280 basis points to 45.9 per cent as compared to the same quarter of fiscal 2021. The gross margin growth was led by margin expansion in Nike Direct business.

Despite continued inventory constraints and supply chain challenges, Nike Direct grew 8 per cent, led by North America Direct growth of 30 per cent, including record Black Friday week results. Likewise, the Nike Brand Digital delivered strong revenue growth of 11 per cent, led by double-digit growth in North America and APLA, partially offset by a decline in Greater China. The contribution to Nike Direct growth was the steady normalisation of owned physical retail with Nike owned stores up 4 per cent.

In the reporting quarter, the revenues from Nike Brand were $10.8 billion, flat to prior year on a currency-neutral basis, driven by Nike Direct growth, offset by lower revenues in wholesale business.

The revenues from Converse segment were $557 million, up 16 per cent on a currency-neutral basis, led by strong performance across all channels in Europe and North America.

The net income of the company reached $1.3 billion with an increase of 7 per cent while the diluted earnings per share was $0.83, increasing 6 per cent over the same period last year.

The company ended the quarter with $6.5 billion of inventories and $15.1 billion of cash and equivalents and short-term investments. The cash equivalents and short-term investments increased approximately $3.3 billion from last year, driven by strong free cash flow, partially offset by share repurchases and cash dividends.

In the second quarter, Nike returned approximately $1.4 billion to shareholders, including the dividends of $437 million and share repurchases of $968 million for the quarter, reflecting 6 million shares retired as part of the four-year, $15 billion programme approved by the board of directors in June 2018. As of November 30, 2021, a total of 60.8 million shares have been repurchased under the programme for a total of approximately $6.4 billion.

Fibre2Fashion News Desk (DD)





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